INDONESIA - IDB - Islamic Development Bank approves $1 billion in projects across 20 countries

www.cpifinancial.net - The 284th meeting of the Board of Executive Directors of the Islamic Development Bank, which convened at IDB headquarters starting Sunday 16 July, under the chairmanship of Dr. Ahmad Mohamed Ali, President, IDB Group, approved more than $ 1,158 million towards development projects financing for IDB member countries and Muslim communities in non-member countries.
This is the largest amount of approvals by a single IDB board meeting since the Bank’s inception in 1975. The approvals covered a large number of strategically important development projects comprising: (source)

KOREA - FINANCE - Islamic Development Bank signs $2bn deal with Korea Development Bank

www.cpifinancial.net - The Islamic Development Bank ( IDB ) has signed a Framework Co-financing Agreement (FCA) with Korea Development Bank (KDB) in which each bank will earmark $1 billion to co-finance public private partnership (PPP) projects in IDB member countries over the next three years.
 

The common pipeline of projects for co-financing would be based on the two institutions' shared understanding of the development needs of the target countries and best practice concepts on development financing. The agreement aims to target projects in infrastructure, agriculture, human development and development of the private sector.  (source)

INDONESIA - CAPITAL MARKETS - Bank Muamalat Gets Ball Rolling On Fund-Raising With Bond Sale

www.thejakartaglobe.com - Bank Muamalat, an Islamic lender in Indonesia, is planning to raise Rp 800 billion ($85 million) from the sale of subordinated Islamic debt this week.

The bank, which is partly controlled by the Islamic Development Bank, is offering the 10-year Islamic notes to investors today and plans to list the debt on the Indonesia Stock Exchange next Monday.

The offering will be the first as part of Bank Muamalat’s long-term plan to raise Rp 1.5 trillion within two years, the lender said in a brief prospectus published in Investor Daily on Monday.

Indonesia is the world’s largest Muslim population country, with Muslims comprising 85 percent of its 240 million population.  (source)

INDONESIA - RATINGS - Bank Muamalat Indonesia Tbk.

new.pefindo.com -PEFINDO affirmed its “_idA+” rating to PT Bank Muamalat Indonesia Tbk (BBMI or the Bank) with a ‘stable’ outlook.  At the same time, PEFINDO also assigned “_idA” rating to the Bank’s proposed Sukuk Subordinated Bond under PUB scheme with amount of up to IDR1.5 trillion.  The rating reflects the strong support from Islamic Development Bank (IDB), high growth potential of sharia banking segment, and BBMI’s strong market position.  However, the rating is constrained by the Bank’s increasing pressure in capitalization profile and moderate profitability performance.  (source)

WORLD - BANKING - Shariah ‘megabank plan’ seeks to raise $1bn capital

www.gulf-times.com - The Islamic Development Bank is seeking partners to bring investment in a Shariah-compliant megabank to more than $1bn before the opening this year, allowing it to finance larger construction projects.
The financial institution, to be established with Riyadh-based Dallah Albaraka Group and the Qatari government, will issue securities that Islamic lenders can buy to manage excess funds, IDB president Ahmad Mohamed Ali said in a May 10 interview in Kuala Lumpur. The three parties signed a memorandum of understanding in April to set up the bank in Doha, Qatar, to fund roads, ports and power plants.
“An Islamic megabank will be a significant development,” Afaq Khan, Dubai-based chief executive officer of Standard Chartered’s Islamic unit, said in a telephone interview on Monday. “Such a bank would have the balance sheet, the capital and the underwriting capabilities to undertake significant projects of size.” (source)

INDONESIA - EVENTS - IDB: Islamic Finance Must Focus of Economic Development

www.investor.co.id - BANDUNG - The strengthening of Islamic finance in sustainable economic development should focus on efforts to promote inclusive economic development and not on short-term trade financing.
Thus the assertion of President Islamic Development Bank (IDB) Ahmad Mohammed Ali at the opening of the international Islamic finance seminar in Bandung on Monday. Ali said, inclusivity in the development of Islamic economics and finance, among others in the Islamic banking sector, stock market products, micro-insurance, financial institutions, especially Islamic Zakat and waqaf institutions.
"In the last 10 years have proven the Islamic financial systems of a significant opportunity to open up and improve public access. Though small, Islamic microfinance industry has shown good growth," he said.  (source)

INDONESIA - EVENTS - Islamic Finance in West Java Reaches 5%

www.investor.co.id - BANDUNG, West Java Governor Ahmad Heryawan said the Islamic financial system has been used about 5% in the economy in West Java.This amount is higher than the percentage of use of the concept of Islamic economics in the national economy reached 4.2%."Islamic financial system has been used for more than five percent in West Java, is higher than the national percentage for the composition of a large Muslim population in West Java," said Ahmad at the residence of the governor office in Bandung West Java, on Sunday night (6/5). (source)

INDONESIA - BANKING - Islamic Banking Grows 40.2 Percen

WWW.REPUBLIKA.CO.ID, BANDUNG - Bank Indonesia (BI) noted the Islamic banking industry in Indonesia grew 40.2 percent in the last five years in the conventional banking growth over the same period of 16.7 percent. BI deputy governor Halim Alamsyah in his speech at the opening of the International Seminar on Islamic Finance in London on Monday (7/5).
With such developments, the Islamic banking Halim believes contributed to the national banking industry will increase from 4.1 percent currently to 15-20 percent in the next 10 years. Until 2011, total assets reached Rp 214 trillion sharia, or about 23.8 billion U.S. dollars made up 69.5 percent of the assets of Islamic banking and sukuk 18.7 percent. (source)

INDONESIA - EVENTS - IDB President: The growth of Islamic finance in Indonesia remarkable

www.bisnis.com - BANDUNG: The role of the Islamic financial sector in sustainable economic development can be strengthened by promoting inclusive economic development.
Islamic Development Bank President Ahmad Mohamed Ali said there has been a trend-based Islamic financial sector to focus on short-term trade financing.
According to Ahmad, inclusiveness and Islamic finance in the economy can be seen in the banking industry, capital markets products, micro insurance, micro finance institutions, and endowments and charity institutions. (source)

INDONESIA - FINANCE - PT Indonesia Infrastructure Assurance (PII) and the Islamic Corporation for Insurance of Investments and Export Credits (ICIEC) Handle Signs Memorandum of Understanding

www.iigf.co.id - Manila, 30 April 2012 - PT Indonesia Infrastructure Guarantee Corporation (Limited) / PII and the Islamic Corporation for Insurance of Investments and Export Credits ("ICIEC") has signed a Memorandum of Understanding today in Asia Finance and Risk Mitigation Forum 2012 in Makati City, Philippines.

ICIEC is part of the Islamic Development Bank (IDB) Group, which provides export credit and investment insurance in accordance with Islamic Sharia to the parties that invest in member countries ICIEC or export of these countries.   (source)

INDONESIA - RATINGS - Bank Muamalat

new.pefindo.com - PEFINDO assigned its “idA+” rating to PT Bank Muamalat Indonesia Tbk (BBMI or the Bank) with a ‘stable’ outlook. The rating reflects the strong support from Islamic Development Bank (IDB), high growth potential of sharia banking segment, and BBMI’s strong market position. However, the rating is constrained by the Bank’s increasing pressure in capitalization profile and moderate profitability performance. (source)

WORLD - OPINION - Mega bank, stock exchanges and trading platforms

www.btimes.com.my - ISSUES TO CONSIDER: An open letter to Islamic Development Bank president Dr Ahmad Mohamed Ali
DEAR Dr Ahmad Mohamed Ali, president, Islamic Development Bank (IDB) Group;

Asalaam Alaikum,

The Islamic finance world welcomes your comments on the Mega Islamic Bank with much excitement and great sense of anticipation.

“…The ‘Mega Islamic Bank’ comes as an initiative of the Islamic Development Bank in its efforts to address the dearth of senior financiers, the absence of the Islamic tools of stock exchange and the absence of market liquidity between Islamic banks.”

Dr Ali, the Islamic mega bank, working with IDB and industry stakeholders, needs to also include stock exchanges and trading platforms, both Islamic and OIC, as part of the conversation. (source)

INDONESIA - OIC - IDB approves $1.96bn in new projects

www.arabnews.com - The closing ceremony of the 37th annual meeting of the board of governors of the Islamic development bank (IDB) hosted in Khartoum on Thursday was marked by the signing of a number of financing agreements. Under these agreements, the bank will contribute to financing of new development projects in 21 member countries with a total value of $1.96 billion.

According to an IDB source, the list of these countries included Sudan, Turkey, Bangladesh, Chad, Bahrain, Indonesia, Guinea, Mauritania, Uzbekistan, Senegal, Burkinafaso, Tajikistan, Sierra Leone, Cameron, Niger, Mali, Afghanistan, Gambia, Maldives, and Guinea Bissau. (source)

INDONESIA - TRADE FINANCE - Military Uniform Supplier Sritex Gets $400m Loan From Islamic Bank

www.thejakartaglobe.com - Textile manufacturer Sri Rejeki Isman has taken out a $400 million loan, tapping into $3.3 billion in funds that the Islamic Development Bank is making available to Indonesian companies.

Last May, the Saudi Arabia-based IDB announced that it would make the loans available to companies in Indonesia, both private and public.

“We want to see more private projects tap into the loan. The loans will be available until 2014 and 2015,’’ Armida Alisjahbana, the state minister of national planning and development, said on Tuesday.   (source)

INDONESIA - TAKAFUL - Takaful Malaysia nears deal on Indonesian stake sale

www.btimes.comm.my- Takaful Malaysia recently received an enquiry from a close-knit family-run conglomerate, says its group managing director


Kuala Lumpur: Syarikat Takaful Malaysia Bhd (Takaful Malaysia) is close to selling a stake in its Indonesian unit to a local partner to expand its distribution network in the republic.

Group managing director Datuk Hassan Kamil said the insurer will consider issuing new shares as well. (source)

INDONESIA - CALL FOR PAPERS - International conference on Islamic capital markets (deadline abstracts March 15, 2012)

INTERNATIONAL CONFERENCE 

ON ISLAMIC CAPITAL MARKETS

June 19-20, 2012

Jakarta, Indonesia

CALL FOR PAPERS

Islamic capital markets are to become an important part of the Islamic financial system. While new products are steadily coming into the market and the Islamic investment instrument are growing, Islamic capital markets still constitute a very small niche. For a discernible impact on the investment promotion, market stability, and equitable socio-economic development there is a growing need to accelerate the process of product development, to create conducive regulatory environment and to improve the market practices. This task requires development of new human capital and knowledge base.
(more information hereunder) or (download flyer here or here)

INDONESIA - BANKING - Bank Islam eyes stake in Indonesian bank

www.bttimes.com.my - Bank Islam Malaysia Bhd, the country’s oldest Islamic bank, is in early talks to buy a stake in PT Bank Muamalat Indonesia, sources said.

Bank Muamalat is Indonesia’s second largest Islamic lender.  “The size of the stake could be slightly below the mandatory general offer trigger level (of 33 per cent)... it ultimately depends on Bank Muamalat’s shareholders,” one of the sources told Business Times. (source)

OIC - IDB - Islamic Development Bank Group in Brief (brochure)

download link

INDONESIA - TRADE FINANCE - ITFC Signs US$60 million Structured Trade Finance Sugar Deal with Indonesia

http://www.itfc-idb.org - Jeddah, January  2012: The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IDB) Group, signed a US$60 million Syndicated Structured Finance with an Indonesian sugar refinery, PT Angels Products at IDB Headquarters in Jeddah.

The US$60 million structured trade financing for Indonesia’s PT Angels is for the purchase of raw sugar for the domestic demand. The agreement was signed by Mr Tony Wijaya Ng, Director, PT Pasifik Agro Sentosa, Indonesia and Eng. Hani Salem Sonbol, Deputy CEO of ITFC. Mr. Hasjim Oemar, President Director, PT Pasifik Agro Sentosa, and Mr. Teh Choon Bok, Independent Commissioner, PT Pasifik Agro Sentosa, attended the signing ceremony along with representatives from ITFC. (source)

INDONESIA - FINANCE - Islamic Development Bank Finances Dayaindo

Theindonesiatoday.com - Islamic Development Bank (IDB) allocates US$42 million of financing support to PT Manhattan Investama, parent company of PT Dayaindo Resources International Tbk (KARK), to assist its business growth.

Around US$15 million, provided by Islamic Corporation for the Development of Private Sectors (ICT), will be allocated to KARK to fund up coal trading activities. Director Sudiro Andi Wiguna said the money is enough to lease three coal vessels for one month. (source)